Security Products Manufacturing Industry Profile

Companies in this industry manufacture electronic security and safety communications equipment such as fire and security alarms, intercoms, and vehicle and pedestrian signaling systems. Major companies include Resideo and divisions of GE Security, and Raytheon Technologies (all based in the US), as well as ASSA ABLOY (Sweden), Nippon Signal (Japan), SWARCO (Austria), and divisions of Johnson Controls (Ireland) and Siemens (Germany).

The global security products manufacturing industry generates about $125 billion in annual revenue, according to Statista. Worldwide sales of security equipment are forecast to rise reach about $175 billion by 2024. Although the US and Western Europe are the largest markets, China and India are expected to see the fastest growth.

The US security products manufacturing industry includes about 330 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $4 billion. Manufacturers of automatic fire sprinkler systems are not included in the industry.

COMPETITIVE LANDSCAPE

Demand is driven by residential, office, and commercial construction, as well as construction spending for highway, street, and railroad infrastructure. Profitability depends on efficient manufacturing and effective marketing. Large companies compete through advantages in economies of scale and by offering a wide spectrum of products. Small companies can compete by specializing in niche products and through superior customer service. The US industry is highly concentrated: the 50 largest companies account for about 85% of industry revenue.